Peeter was born in February 1744. Peeter's father was Jüri and his mother was Ello. His paternal grandparents were Niklus and Ann. He had five brothers and three sisters, named Evert, Peep, Juhan, Jaan, Hans, Tiiu, Margaret and Mari. He had three half-brothers and a half-sister, named Hindrik, Jaak, Jakob and Ann.